Cathie Wood's ARK Investment buys 59.7K shares of Tesla today
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2 hours ago
- Yahoo
Cathie Wood buys $18.7 million of troubled megacap tech stock
Cathie Wood buys $18.7 million of troubled megacap tech stock originally appeared on TheStreet. Cathie Wood doesn't easily walk away from the companies she believes in. The Ark Invest founder has a habit of sticking with tech stocks she sees as shaping the future. Even when these names face controversy, Wood often leans in rather than pulling back. This is what she just did, adding to a high-profile tech stock that's been under pressure, caught in headlines and market swings. Wood's funds have experienced a volatile ride this year, swinging from sharp losses to strong gains. 💰💸 💰💸 In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood's tech bets. But the momentum hit a wall in March and April, with the funds trailing the market as top holdings slid amid growing concerns over the macroeconomy and trade policies. Now, the fund is regaining momentum. As of July 11, the flagship Ark Innovation ETF () is up 25.5% year-to-date, far outpacing the S&P 500's 6.4% gain. Wood's remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when ARKK dropped more than 60%. As of July 11, Ark Innovation ETF, with $6.8 billion under management, has delivered a five-year annualized return of negative 1.7%. The S&P 500 has an annualized return of 16.2% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. According to Wood, these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year 'rolling recession' and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks. "During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. But not all investors share this optimism. Over the past 12 months through July 10, the Ark Innovation ETF saw nearly $2 billion in net outflows, according to ETF research firm VettaFi. On July 11, Wood's Ark funds bought 59,705 shares of Tesla Inc. () . That chunk of stocks is worth roughly $18.7 million. Wood has been a longtime supporter of Tesla and still believes in the stock, even after a sharp drop following CEO Elon Musk's recent announcement about launching a new political sales have dropped in key markets like Europe and China, as Musk faced political pushback and alienated some car buyers in key markets. 'We've been dealing with controversy around Elon Musk in one form or another since we first bought the stock,' Wood said in a recent interview with Bloomberg. 'We do trust the board and the board's instincts here and we stay out of politics.' She also noted that Musk seems more focused on the business again, especially after he decided to take charge of sales in the U.S. and Europe. 'One of the announcements Elon made recently is that he is going to oversee sales in the U.S. and in Europe,' Wood said. 'When he puts his mind on something, he usually gets the job done. So I think he's much less distracted now than he was, let's say, in the White House 24/7.' Meanwhile, Tesla is entering the India market, with its first showroom in Mumbai next week. Tesla will need to pay about 70% import duty fees, as it does not want to produce cars in India, according to Reuters. More Tesla: Tesla robotaxi launch hits major speed bump Tesla claims rival startup is built on stolen trade secrets 10,000 people join Tesla class action lawsuit over key issue Back in March, Wood predicted Tesla's stock would reach $2,600 in five years, which is nearly nine times higher than where it trades now. Much of the optimism is driven by the company's highly anticipated Robotaxi, which Wood believes will account for 90% of the company's value over time. Tesla has long been Wood's top holding, accounting for 9.26% of the Ark Innovation ETF. The stock is down more than 22% year-to-date, the worst among the Magnificent 7 Wood buys $18.7 million of troubled megacap tech stock first appeared on TheStreet on Jul 12, 2025 This story was originally reported by TheStreet on Jul 12, 2025, where it first appeared.
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Chinese automaker increases stakes in competition against Tesla with mega-cheap model: 'To become a serious player in the mass-market EV segment'
After Tesla's new Model Y had consumers shocked by its lowered price, Chinese technology company Xiaomi dropped even lower prices on its new SUV. According to Reuters, Xiaomi "priced its new electric YU7 SUV from 253,500 yuan ($35,364), almost 4% below Tesla's Model Y." The details surrounding the new YU7 are already grabbing EV lovers' attention. In one review of the SUV, the comparison of the YU7 and the 2025 Ferrari Purosangue was highlighted. With the Purosangue starting at just under $430,000, the YU7's affordability is even more impressive and appealing. Switching to an EV is a great move for those looking to reduce their tailpipe emissions and put an end to the relentless fluid changes of gas-powered cars. With the electric vehicle market continuing to grow, new models are constantly launching, so your options are broad. Plus, the used EV market also continues to grow. The Tesla Model Y has been doing well in China recently, but Xiaomi has high hopes for the future of the YU7 SUV. "Xiaomi's CEO and founder Lei Jun has said he wants the YU7 to challenge the Model Y, and analysts say it has the potential to succeed," Reuters reported. Rosalie Chen, a senior analyst at Third Bridge, a global research organization, said, "The YU7 will serve as an early test of whether Xiaomi can broaden its appeal beyond early adopters and tech enthusiasts to become a serious player in the mass-market EV segment," as quoted by Reuters. The YU7 SUV by Xiaomi is officially being sold in China now, with plans to bring the vehicle to the global market by 2027. Would you buy a $10K car from China? Definitely Maybe No way I don't need a new car Click your choice to see results and speak your mind. Affordable, luxury-looking electric vehicles are just the beginning of ways to save while owning an EV. Installing solar panels is another great way to save big while driving electric, as fueling with solar energy is cheaper than using public charging stations or relying on the grid. With EnergySage, it's easy to compare quotes from vetted local installers and save up to $10,000 on solar installations. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
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xAI explains the Grok Nazi meltdown as Tesla puts Elon's bot in its cars
Several days after temporarily shutting down the Grok AI bot that was producing antisemitic posts and praising Hitler in response to user prompts, Elon Musk's AI company tried to explain why that happened. In a series of posts on X, it said that '...we discovered the root cause was an update to a code path upstream of the @grok bot. This is independent of the underlying language model that powers @grok.' On the same day, Tesla announced a new 2025.26 update rolling out 'shortly' to its electric cars, which adds the Grok assistant to vehicles equipped with AMD-powered infotainment systems, which have been available since mid-2021. According to Tesla, 'Grok is currently in Beta & does not issue commands to your car – existing voice commands remain unchanged.' As Electrek notes, this should mean that whenever the update does reach customer-owned Teslas, it won't be much different than using the bot as an app on a connected phone. This isn't the first time the Grok bot has had these kinds of problems or similarly explained them. In February, it blamed a change made by an unnamed ex-OpenAI employee for the bot disregarding sources that accused Elon Musk or Donald Trump of spreading misinformation. Then, in May, it began inserting allegations of white genocide in South Africa into posts about almost any topic. The company again blamed an 'unauthorized modification,' and said it would start publishing Grok's system prompts publicly. xAI claims that a change on Monday, July 7th, 'triggered an unintended action' that added an older series of instructions to its system prompts telling it to be 'maximally based,' and 'not afraid to offend people who are politically correct.' The prompts are separate from the ones we noted were added to the bot a day earlier, and both sets are different from the ones the company says are currently in operation for the new Grok 4 assistant. These are the prompts specifically cited as connected to the problems: 'You tell it like it is and you are not afraid to offend people who are politically correct.' * Understand the tone, context and language of the post. Reflect that in your response.' * 'Reply to the post just like a human, keep it engaging, dont repeat the information which is already present in the original post.' The xAI explanation says those lines caused the Grok AI bot to break from other instructions that are supposed to prevent these types of responses, and instead produce 'unethical or controversial opinions to engage the user,' as well as 'reinforce any previously user-triggered leanings, including any hate speech in the same X thread,' and prioritize sticking to earlier posts from the thread.
